Oil Slides as Trump Signals Serious U.S. Iran Talks

Global oil prices slid sharply on Monday after U.S. President Donald Trump said Iran was “ seriously negotiating ” with the United States over its nuclear programme, signaling a possible de-escalation of tensions that had driven crude to multi-month highs last week. The international benchmark, Brent crude , fell as much as 7.4% from Friday’s close before trimming some of the losses, retreating to around $66 a barrel by early trading.

Markets interpreted Trump’s comments made after no U.S. military action occurred over the weekend as a sign that the threat of conflict in the Middle East might be receding, prompting a swift reduction of the recent geopolitical risk premium that had buoyed prices. Arne Rasmussen, chief analyst at Global Risk Management, said oil had “attracted a lot of speculative flows last week,” and the shift in outlook forced traders to sell off positions.

Last week, combative rhetoric from both Washington and Tehran, combined with Trump’s decision to send an “armada” of naval forces to the region, had fueled fears that supply disruptions through key routes such as the Strait of Hormuz could push prices higher. Brent briefly climbed above $70 a barrel for the first time since September before the reversal.

In addition to geopolitical developments, a broader sell-off across commodity markets weighed on oil prices. Precious metals such as gold and silver which had rallied in recent sessions also tumbled on Monday, contributing to risk-off sentiment among investors. The U.S. dollar further regained ground after recent losses, making dollar-denominated commodities like oil more expensive for holders of other currencies.

On the supply side, the OPEC+ group of producers reaffirmed its decision to leave production unchanged in March, maintaining the freeze on output increases that had been in place to support prices. While the move kept a floor under markets, it did not provide fresh bullish impetus in the face of rapidly shifting geopolitical sentiment.

Analysts noted that traders had been keen to carry enough oil positions heading into the weekend in case of a sudden shock, a mindset shaped in part by past episodes where aggressive policies and threats from Washington, including actions against Venezuela’s oil sector, had caught markets off guard.

The dramatic pullback in prices illustrates how quickly oil markets can swing in response to changes in risk perception , global demand expectations and financial market dynamics. With diplomatic channels now in focus and supply policy steady, the immediate upward pressure on oil has eased. However, any abrupt reversal in talks or renewed tensions could restore volatility and once again push crude prices higher.